Multi-Year Motor Insurance
What is Multi-Year Motor Insurance?
As per the laws and regulations, the Insurance Regulatory and Development Authority of India has made it mandatory for all the general insurance providing company in India to offer multi-year third-party insurance for the vehicles that are sold after 1st September 2018. In simple words, it means that instead of offering a single year third-party insurance policy, the insurance company will have to offer a single insurance coverage for three years straight for the cars and a complete five years’ insurance plan for two-wheelers.
This change was one of the greatest moves in the insurance industry. This will provide a complete long-term insurance coverage to both the two wheeler and four wheeler vehicles. This multi-year insurance policy is applicable to all the vehicles purchased between the time span of 1st September 2018 and 31st March 2019. Also, this is applicable only on the purchase of third-party vehicle insurance, and as for the comprehensive plans owners, they can still purchase the policy for one year’s period.
What are the benefits of Multi-Year Third-Party Vehicle Insurance?
There is no need to hurry for the Renewal of Insurance policy every year: Even though the insurance holders would have to pay a raised premium each year, the insurance holders in a multi-year insurance plan have to pay it collectively for three or five years. It means insurance holders are no longer required to pay the premium for their third-party insurance policies for three to five year’s plan.
It is very easy to port the Insurance Provider: If a person has taken an insurance plan for a period of three or five years, it does not mean that they cannot change their insurance company or provider for that particular tenure. This insurance plan provides a full flexibility of porting the insurance provider in order to get better coverage, deals, offers and services.
No hassle of Raised Premium Rates of Third-Party Insurance: The premium rates of the third-party insurance are increased by the Indian Government every financial year. Because the multi-year insurance holders have paid the premium rates for their insurance policy all in advance, they do not have to worry about that fact. They are not required to pay any extra money for this hike in insurance rates.
Lesser Uninsured four-wheelers or two-wheelers on Indian Roads: The was a huge number of uninsured vehicles on the roads of India. Although, this number gradually decreased with time. It is due to the fact that most of the people fail to get their insurance policy renewed on time. People should make sure that they get their insurance renewed and updated every time.
Why should one opt the Multi-Year Third-Party Insurance?
The third-party insurance policy covers for the complete damage and loss caused to the life or vehicle of any third-party. It thus provides a better financial protection to you against the losses caused to a third-party.
The multi-year insurance plan makes sure that the insurance holders are protected for a long period without any complications or liabilities.
The multi-year insurance plan also provides the protection against legal liabilities faced in case of the death, injury, or damage caused to any third-party.
The third-party insurance policy plan for multiple years is much more affordable and cheaper compared to the normal insurance.